02/10/2016 Sunday Politics Wales


02/10/2016

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This programme contains some flashing images.

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We're live from sunny Birmingham on day one of

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the Conservative Party Conference, where, three months after Britain

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voted to leave the European Union, the Prime Minister has given

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us her first inkling of how she plans to do it.

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Morning, folks - welcome to the Sunday Politics.

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Theresa May says she will trigger Article 50, starting the two year

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process of negotiations that will culminate in Britain

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leaving the EU, before the end of March next year.

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So Brexit by Easter 2019 - but what kind of relationship

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A Great Repeal Bill will also be voted on next Spring,

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but won't be enacted until we leave, at which point EU laws will be

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In the capital, if London was defined by the conservatism of the

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Notting Hill set, what now? We explore the potential rise of Sidcup

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Man. So far no Great Repeal Act to get

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rid of the Sunday Politics Panel - Steve Richards, Rachel Sylvester

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and Tom Newton Dunn. It's 100 days since we voted

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to leave the EU and the clamour has grown for the Government to tell us

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what Brexit would look like. This morning, as the Tory faithful

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gather in Birmingham, we still don't expect to be told

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what Brexit means but we do know more about the timetable

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and the extrication process. A Bill will go before parliament

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this spring to repeal the 1972 European Communities Act,

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which legalised our membership But it won't actually come

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into force until we leave. Theresa May also told

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the Andrew Marr Show that Article 50 would be invoked

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by March of next year - starting the two year process

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of renegotiation before we leave. I have been saying we would not

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trigger it before the end of this year, so that we get confirmation in

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place. I will be saying in my speech today that we will trigger before

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the end of March next year. The remaining members of the EU have to

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decide what the process of negotiation is. I hope, and I will

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be saying to them, that now they know what the time is going to be,

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it is not an exact date, but they know it will be the first quarter of

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next year, that we will be able to have some preparatory work so that

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once the trigger comes we have a smoother process of negotiation.

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Theresa May, on this channel, just over an hour ago. What do you make

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of it? Saggy as you said, we know more about when but we don't know

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what Brexit is going to be. We don't know how the relationship will work

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out, we don't know what the Prime Minister's negotiation position will

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be, we haven't worked out anything about the free market access and

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freedom of movement. All of the substance. It is a significant

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announcement but we don't actually know anything really big about what

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our lives are going to be like in future. Is there a risk from the

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Prime Minister? Is there a risk putting this before Parliament to

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repeal the 1972 Communities Act? Undoubtedly. Anything you put before

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the House of Commons or the House of Lords, where there is no Tory

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majority, let alone a Brexit majority, risks getting amended. She

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runs the risk. There is also a risk of not saying this, not having the

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greater appeal, which is actually a great repeal act, when is being

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repealed, but she needed to throw the Tory right red meat, and they

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got it this morning. There is always the potential of a constitutional

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crisis. If the Lords were to dig in over this, or even digging over

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Article 50, demand a vote on that, lawyers are arguing whether you need

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it or not, it may not be plain sailing when you have a majority of

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12? It definitely isn't going to be with a majority of 12. The scope for

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constitutional crisis is many. Clashes with the Lords, clashes with

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the Commons, Scotland is still there in the background allows a

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significant factor. It will always be there, but perhaps in a different

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context. I don't think this will be the trigger for a constitutional

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crisis. You have to admire the elegant choreography. I was told

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ages ago that she knew she could not keep carry on saying Brexit means

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Brexit, there will have to be new lines. This is beautiful. We kind of

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knew that Article 50 was going to be triggered early in next year. David

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Davis even said that. It was a fair bet it would be before Easter. They

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couldn't spend the next two years negotiating Brexit and refocusing

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the entire legislative programme to spend the next two years rejigging

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the mountain of legislation we are affected with. They have turned a

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logistical, unavoidable inevitability into a sense of

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momentum this weekend. Very clever presentation. There are going to be

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huge crises to come over this. Picking off the 1972 Act, putting it

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all into British law and legislation, rather than dependent

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on Europe, that is what the Brexiteers wanted. To that extent,

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she has thrown them a bit of red meat today? Yes, but we still don't

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know what Brexit is going to be. But a bit of red meat keeps you going

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for a while. Maybe get them through to lunch time. Today or tomorrow?

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Really just today. The tactic is to get some stuff about Brexit out, get

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them talking about that and then move onto agenda she wants,

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domestic. What do you think? Good luck with that! Are you reading my

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script coming up? It was on the autocue, I'm sorry! Clearly, she is

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accessed about not making his premiership all about Brexit. It

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will be, but she is desperate. She needs to define herself away from

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Brexit, who is Theresa May, what did she really believe? We have heard

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whispers, but the next few days as a chance to do that. The fringe, Liam

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Fox is talking at two fringes. Two opportunities for a story. David

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Davis as well. These two men of great talent and potentially great

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ego, they will not be able to stop themselves having feelings heard.

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And Boris. Boris who? I have not seen him on the fringes. Fringe

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meetings have been quite dull at party conferences recently. Because

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of this issue, I think people are going to pack them out. That is

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where words might be said, explosive words. We live for fringe meetings!

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The PM hopes her announcement will deal with Brexit on day one

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so the conference can get on to talk about other matters.

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But as you can see from this not so slim tome - the conference guide-

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there are plenty of other issues to talk, maybe even argue about.

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Our Ellie caught up with two Tory MPs from different sides

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of the party before they set off, to see what they think lies in store

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# Just can't wait to get on the road again

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# The life I love is making music with my friends

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# And I can't wait to get on the road again...#

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Do you actually enjoy going to conference?

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It's not as much fun as when you're not an MP,

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because now people want to talk to you and everybody

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But do you make contacts, do you network?

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Do think Theresa May gets nervous about conference,

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I think if you are performing on a big stage, whoever you are,

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you ought to have a few nerves jangling around.

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But she's a polished performer, I'm sure she'll know

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Theresa May will also know she has several contentious issues she needs

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It is perhaps not surprising, then, that day one of

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We're pretty well balanced between those of us like myself,

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representing constituencies with really high levels

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of research, science and agriculture, who will be very

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keen, but probably pragmatically understanding that we are not

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going to hear everything tomorrow, and the rest

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of the party who are just desperate for information.

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If they don't think the deal is going in the right way,

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they will want to say something about it.

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I think the time frame is pretty clear.

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We are going to trigger Article 50 at some point relatively

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That means we will get the negotiations done a good year

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The rest is going to be important meat on the bones.

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But, in terms of the core strategy, Theresa May goes into this

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So, a unified front, albeit perhaps fragile.

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But then there is the question of grammar schools.

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Depends whether we hear more about it.

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You know, the concept in its one-dimensional sense,

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you can't have a problem with that, can you?

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Giving parents choice, giving bright children the chance

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But, for me, for many of us, it has to be a package

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Our teachers are pretty stressed and overworked

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I'm not actually sure this is the right time.

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I would rather see emphasis being put on fairer funding.

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Constituencies like mine have been underfunded for decades.

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If you go into politics and government scared

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of your own shadow, unprepared to do anything bold or brave,

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I think there is no risk-free option.

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Of course, people have different views on grammar schools

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and it is a totemic political issue as well.

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But I think if you read the green paper, the Prime Minister has set

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out a very sensible, carefully calibrated approach,

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not just to grammar schools but the wider

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The new PM also faces big strategic decisions on expensive projects

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like airport expansion, an area even her Cabinet

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With all these big infrastructure projects, HS2, Heathrow,

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issues around fracking, nuclear as well, I think we have got

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to take the right decisions for the country, make sure Britain

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Each one of those is thorny in its own right.

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But what I think is most important is we look at it very carefully,

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That is where we all start to see the metal in Theresa,

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Whilst on the one hand, having a Prime Minister -

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nobody could have been more delighted than me that we managed

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to cut the tax credits changes - but having a Prime Minister

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that sticks to her guns, I'm not for U-turning,

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How confident are you, going to this conference,

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that it is all going to be sorted and you are going to be

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Well, people predicted an economic nosedive after the referendum.

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People said there would be political chaos.

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Actually, the economy has proved resilient.

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I think there is a sense of resolve on all sides of the party

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on all of these different issues to get behind this Prime Minister

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Last year, you got into a bit of trouble, being quite vocal

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Some suggestion you weren't a proper conservative.

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I think I am absolutely a proper conservative.

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I think my party needed reminding what conservative was.

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Our job is to help people who need a leg up.

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Her opening speech in Downing Street told me she absolutely is.

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Like all of these things, we will hear more about this week.

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# And I can't wait to get on the road again. #

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And we're joined now by the Transport Secretary,

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who was a leading Leave campaigner, Chris Grayling.

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Welcome back to the programme. The great repeal act, what exactly does

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it repeal? It repeal the 1972 European Communities Act. It means

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the European Court of Justice no longer has sway in the United

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Kingdom. It means the European Commission and Parliament no longer

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make laws for us. As of today, in our system, European law is supreme

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over UK law, and it repeal that. Except what it does is it

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consolidates all existing European legislation into British law. It

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would be more accurate to call it the great Consolidation act? Is This

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is what I argued for during the League campaign. The remaining

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campaign said you could not do it, it will take years, it will be a

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disaster. My response then is what it is now, the best way to do it is

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to consolidate existing legislation, much of which we will want to keep,

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the environmental measures, the workers' rights measures, what we

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want to do is to make sure we can get certainty before the event and

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after the event, for workers, businesses, but what the legal

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position will be. Over time, we have the freedom, outside the European

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Union, free from the control of the European Court, to change our legal

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system in the way that we want. It does mean we would leave the EU with

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all of this EU law still part of British law. Now, what would you

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wish to change in the aftermath? There is a whole variety of

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different things we will be looking at a change. For example, if you

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want a practical one, it is unlikely that after we have left the European

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Union we will still be paying child benefits to children that have never

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even entered the United Kingdom. That is the kind of thing we will be

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free to change after we have left. What else? Much of it we will want

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to keep, environmental measures, not all that has been done in the

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European Union for 40 years has been bad for Britain. How long will it

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take to pick all of this after we leave? Will be down to the

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Government to decide... Ten years? 20 years? It will take it as long as

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we choose. What is right and proper is that on the day after there is a

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degree of certainty for businesses. It would not be fair for a company

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to be operating under a set of rules, for there to be a cliff edge

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where they do not know what is going to happen the day after. Let's make

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it an evolution, not a revolution. A lot of the things you have to agree

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to enter negotiations mean it will have to remain law even after we

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leave? This clearly the case that if a business in this country is

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continuing to sell a product in the European Union, it will have to make

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the standards of the European Union. Those rules will apply. That is the

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same if we're selling to the United States, the rules of the United

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States would apply to a business planning to sell a product there.

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What happens if you lose the vote? It is inconceivable that Parliament

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can look at the view of the British public and ignore it. Parliament

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voted overwhelmingly for the referendum to take place in the

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first place, the people have given a mandate and I am certain Parliament

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will fulfil it. What would happen? You have a

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majority of only 12 and there was a majority for remain in the Commons

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and there is a large majority in the house of lords. If the parliament

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does not seamlessly agree for what you call the great repeal act, what

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would happen? Both houses are full of Democrats and they will respect

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the will of the people. But we could be faced with a constitutional

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crisis? We have taken the decision to leave and parliament voted for

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the referendum and it is inconceivable that Parliament would

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not allow that process to go forward. If the inconceivable

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happen, you'd have to cores and -- call an election. Inconceivable is a

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bit of a stretch. Plenty of voices, particularly in the House of Lords,

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would use this as a an opportunity to thwart you. And I don't think the

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House of Lords will turn around and say we should not fulfil that. There

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may be dissenting voices but they will view it as a democratic mandate

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that we have to fulfil. Has your party don soundings in the Commons

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to make sure you can get this through? I've not been involved in

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that discussion but parliament will respond to the will of the people.

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That's the way this country works. That's what you hope. We shall see

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how it works. We've been told by the Prime Minister this morning that

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article 50 will be triggered by the end of March. That means that we are

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out by Easter 2019. Can you confirm that those British members of the

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European Parliament currently in Strasberg, there will be no more for

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them after this. If we have left by the end of the two-year period. It

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is technically possible to extend it. After that period, there

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wouldn't be EP is after that point in 2019. -- MEPs. For Brexit to mean

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Brexit, the famous phrase, which is basically tautology. It would mean

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the freedom to have our own trade laws. It would mean the ability to

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do that? You are leading me to answer questions about the specific

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legal structures. It means our own free-trade deals? Correct. It would

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mean we are no longer subject to the rules of the European Court of

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Justice. Also correct. And we would have whatever control we desire over

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immigration? The Prime Minister has been clear that we need to control

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the flow of immigration into the country. Any of these counts as out

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from being a member of the single market. So can we agree that there

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is no way we can remain a member of the single market? There is no such

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thing as a member of the single market. There are a number of

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different trading agreements within the EU. We are effectively a member

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of the single market now but we can't be after this. The question

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you have asked me, do we want to be Norway, Switzerland, Canada when it

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comes to trading arrangements? We want to be the United Kingdom. We

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are the biggest customer of German car-makers, French farmers... I

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don't want to have the referendum fight again. It seems as black as

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black or as White is white that if you want all of that we cannot be a

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member, we can have access on terms yet to be agreed, we will have a

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relationship, but why cannot you say that we won't be a member in the way

:20:39.:20:43.

that we are currently a member of the single market? We won't be a

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member of the European Union but there is no such thing as a member

:20:50.:20:54.

of the single market. There is no single market in services, for

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example. There is but it is not as developed as goods. I believe we

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will end up with a trading partnership with the European Union

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on terms to be agreed that will work for both of us. Access but not

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membership. You cannot be a fully paid-up member of the single market

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without the European Court of Justice ruling on it and you don't

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want that. I don't understand your problem. Your pre-merging --

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prejudging the outcome of negotiations. We want the best

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possible trading arrangements with European neighbours and that is what

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we will work towards. Where different to the other countries

:21:40.:21:44.

that have been involved in these negotiations before. We have heard

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all that before in the referendum and we wanted some clarity on what

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it would mean. Transport, when will you give is the decision on runway

:21:53.:21:59.

expansion? I'm not going to set a date today. I've spent the summer

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looking at the three different options. We have three very well

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presented packages. The airport commission has looked at it

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carefully and the Prime Minister and I want to understand the options in

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detail and understand the strengths and weaknesses of each and we will

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reach our decision shortly. I'm not going to set a date on it. Shortly

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means in this year, surely. I don't want to wait unnecessarily long to

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take the decision but nor do I want to set a date so to to work towards

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that. Will there be a free vote? I need to identify the best option for

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Britain and take the best possible approach to get the support of

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parliament Porritt. Will there be a free vote? Decisions have not been

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taken but we will do the best for the interests of the country.

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Theresa May has said the options for an expansion to Heathrow are

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seriously flawed. Philip Hammond has described the Heathrow option as

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dead as a Norwegian parrot. Can you be sure that the Prime Minister and

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Anna Chancellor will vote for your proposal? We are looking at three

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options that are very new. One of them is Heathrow. Warrant -- they

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are very different options to what has been proposed in the past. They

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are all very well crafted proposals. They are interesting and have

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potential and we need to decide. That is why I am asking you. HS2,

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high-speed train, can you state categorically it will go ahead? It's

:23:55.:23:59.

due to start construction in the spring. The hybrids Bill Haas to

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continue its passage through the house of law -- the hybrid Bill Haas

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to continue through its passage in the house of lords. Will it be 2026?

:24:14.:24:27.

Will it be on-time and on budget? The select committee of MPs said it

:24:28.:24:31.

is unlikely and will certainly be over budget. I expected be

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absolutely clear and on -- expected to be absolutely on-time and on

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budget. The latest estimate for phase one, the core cast is ?14

:24:50.:24:54.

billion but there is contingency on top of that. How much? It is set to

:24:55.:25:03.

Treasury rules. It is always going to be over. If you really believed

:25:04.:25:09.

in the Northern powerhouse wouldn't this money be better spent instead

:25:10.:25:18.

of making it quicker to come to and Birmingham from London in under 90

:25:19.:25:22.

minutes, which you already can, wouldn't it be better to spend the

:25:23.:25:28.

money on state of the art road links between East and West in the north.

:25:29.:25:43.

I think we need to do both. We can't get more freight onto rail without

:25:44.:25:49.

creating more space. By taking fast trains off the West Coast main line

:25:50.:25:55.

which is already busy and put fast freight trains onto the new route,

:25:56.:26:02.

you create more capacity for places like Milton Keynes Dons Northampton,

:26:03.:26:04.

Coventry. It is about making sure we have a transport system that can

:26:05.:26:10.

cope with the demands of the 21st-century. Thank you very much.

:26:11.:26:14.

Now, as we speak, voters in Hungary are going to the polls to vote

:26:15.:26:17.

on whether to accept mandatory EU quotas for relocating migrants.

:26:18.:26:20.

The country's government has been campaigning for voters to reject

:26:21.:26:22.

the EU's proposals and has run a highly controversial campaign,

:26:23.:26:24.

accusing migrants of terrorism and crime - and the Prime Minister

:26:25.:26:27.

Viktor Orban has said today he'll quit if the country votes

:26:28.:26:30.

In response to the ongoing migrant crisis, the EU wants to establish

:26:31.:26:35.

a permanent European resettlement programme, under which,

:26:36.:26:36.

member states must take their fair share of asylum seekers,

:26:37.:26:39.

depending on the size of each country's population and economy.

:26:40.:26:42.

If countries refuse, the European Commission has proposed

:26:43.:26:45.

that they would incur a financial penalty of 250,000 euros per person,

:26:46.:26:49.

to cover the cost of another country taking them.

:26:50.:26:54.

Hungarian Foreign Minister Peter Szijjarto said the plan

:26:55.:26:56.

Last year, Hungary rejected an emergency EU plan that would have

:26:57.:27:01.

seen tens of thousands of refugees transferred out of the country

:27:02.:27:06.

in return for accepting a quota of almost 1300 refugees

:27:07.:27:08.

As an EU border country, Hungary has received 18,500

:27:09.:27:15.

In 2015, it received the most asylum applications relative

:27:16.:27:22.

to its population of any EU state - 1800 for every 100,000 local people,

:27:23.:27:27.

though the majority of those then travelled onwards to other

:27:28.:27:29.

Although the referendum result will have no affect

:27:30.:27:36.

on the EU's decision, the Hungarian government hopes

:27:37.:27:38.

the weight of public opinion will help it resist the plans,

:27:39.:27:41.

running a very controversial referendum campaign.

:27:42.:27:44.

For example, this poster saying migrants carried out

:27:45.:27:46.

We're joined now from Budapest by our Correspondent, Nick Thorpe.

:27:47.:27:55.

I understand that the polls are pretty clear that the government

:27:56.:28:03.

will win this referendum but it needs a turnout of at least 50% for

:28:04.:28:08.

it to matter. What indication of turnout so far? As of 11am, turnout

:28:09.:28:19.

was just over 16% of the electorate. We have an electrode of 8.3 million,

:28:20.:28:23.

the government is campaigning strongly for a no vote. The

:28:24.:28:29.

government have framed the question in such a way that it is hard to

:28:30.:28:36.

vote, yes, we do want this imposed on us. The issue of turnout is

:28:37.:28:48.

important because the opposition have campaigned not to vote or to

:28:49.:28:55.

spoil votes. Even if the government wins on the numbers, if more people

:28:56.:29:01.

vote against the quotas, is it a symbolic defeat for the government

:29:02.:29:06.

if that was to happen? Some people will argue it would be a symbolic

:29:07.:29:14.

defeat if they don't get 50%. We've heard that ministers are backing off

:29:15.:29:19.

the whole issue of turnout. They are hoping for at least 3 million people

:29:20.:29:25.

to vote. Even 4 million which would be the 50%, voting no to migrant

:29:26.:29:31.

quotas. They say that all of those votes will give them a strong moral

:29:32.:29:36.

hand. In the words of the Prime Minister, it will sharpen the

:29:37.:29:40.

Hungarian sword in the battles ahead. Thank you very much.

:29:41.:29:44.

Malin Bjork is Swedish MEP and Vice Chair of

:29:45.:29:47.

the Confederal Group of the European United Left

:29:48.:29:50.

Welcome to the programme. The quota system proposed already seem to be

:29:51.:30:05.

dying if the Hungarians vote the way they are expected to today, that

:30:06.:30:09.

will kill it, will it not? I think we should have it as a point of

:30:10.:30:16.

departure whether we have seen that Hungary is a model in any of the

:30:17.:30:22.

fields that we want hungry -- Europe to be. I don't think Hungary is the

:30:23.:30:29.

model. I don't think we should give him the kind of weight that he

:30:30.:30:34.

actually claims. He wants more weight to this referendum. I don't

:30:35.:30:36.

think we should give it to him. It is not just Hungary, is it? There

:30:37.:30:47.

are meant to be 100,000 migrants covered by the quota system, fewer

:30:48.:30:51.

than 5% have been covered by it. It is just not happening, whether

:30:52.:30:57.

Hungary votes for or against? No, it is totally... But that means it is

:30:58.:31:01.

not operational, it is simply not working. There are serious

:31:02.:31:05.

criticisms to have towards implementing partners in this. But I

:31:06.:31:09.

do think when it comes to the political course, Hungary is playing

:31:10.:31:13.

a very dangerous, racist and right nationalist game. I don't think we

:31:14.:31:18.

should adapt to it. If it comes to it, we have to be prepared to be

:31:19.:31:23.

behind those that do not want to be the Europe that is taking

:31:24.:31:26.

responsibility globally. Let me clarify what you mean by that. The

:31:27.:31:31.

Foreign Minister of Luxembourg has already said that Hungary should be

:31:32.:31:35.

expelled from the European Union. Is that what you are saying as well?

:31:36.:31:43.

No, no. You know what I think? As a progressive politician on the left

:31:44.:31:46.

side, I do have a lot of criticisms to the European Union. But there are

:31:47.:31:51.

planets apart from the kind of models that Viktor Orban is trying

:31:52.:31:57.

to build, where he does not respect human rights, laws and media

:31:58.:32:01.

freedoms, and now he attacks refugee rights. Given all of that, let's

:32:02.:32:07.

accept what you say is true about that, others may dispute it, but

:32:08.:32:12.

let's accept that as true, why should Hungary remain a member of

:32:13.:32:15.

the European Union? Well, it is up to each country that has voted to

:32:16.:32:20.

stay, and voted to become members, voting to stay, I don't think Orban

:32:21.:32:26.

has any intention of leaving EU. I think he wants more influence in the

:32:27.:32:30.

EU. I think he wants more influence domestic league through the

:32:31.:32:33.

referendum and more influence in the EU. The question the rest of the

:32:34.:32:36.

countries have to ask themselves is if we are going to give it to him or

:32:37.:32:40.

adapt to his politics in any of these fields he is active in? I

:32:41.:32:44.

think we should make a stand against it. We should have political forces

:32:45.:32:47.

in other countries that have exactly the same kind of agendas, which we

:32:48.:32:53.

don't want to see strengthened. Isn't the problem that may be

:32:54.:32:57.

Hungary is on the trend, and you are not? We have seem the right, some

:32:58.:33:02.

may call it the far right even, on the march in Austria, Poland and in

:33:03.:33:08.

Hungary, even in Germany, with the recent elections in Berlin and

:33:09.:33:13.

Angela Merkel's backyard, even progressive social Democratic

:33:14.:33:15.

Sweden, your third biggest party is now the Sweden, Democrats, a hard

:33:16.:33:23.

right nativist party. Why are forces on the move, and while the forces

:33:24.:33:28.

used and four on the defensive? The more progressive forces, I think

:33:29.:33:32.

they are growing in many countries also, such as Spain, Ireland and

:33:33.:33:36.

other countries. It is not just for the left, it is for the broader

:33:37.:33:41.

political spectrum to counteract nationalist, right-wing and racist

:33:42.:33:44.

forces. We know where they lead, a dead end. It is a challenge in the

:33:45.:33:49.

European countries. Why is Europe going in this direction? In 2016,

:33:50.:33:54.

why are the forces of the rights so strong? To be honest, I think we

:33:55.:34:03.

have to be a little bit more humble and say are we failing people in

:34:04.:34:08.

some way? Yes, austerity policies are not working. Inequalities have

:34:09.:34:12.

grown for over 20 years in Europe. Of course it is a failure. We are

:34:13.:34:17.

capable of saving banks, but not refugees. People see this. It is

:34:18.:34:21.

political failure and I think we have to sit down and create

:34:22.:34:25.

different pacifists. What is happening now is worrying. I see

:34:26.:34:28.

some of the political forces in Europe. -- create different

:34:29.:34:33.

patterns. I see parties in Europe adapting to racism nationalist

:34:34.:34:42.

voices. I think we have to be the different parties that will not

:34:43.:34:45.

adapt to nationalist stories. They paint imaginary enemies. A huge

:34:46.:34:53.

chunk of Hungary's public spending comes from the European Union, net

:34:54.:34:57.

contributors like Sweden and the United Kingdom. If Hungary votes

:34:58.:35:01.

this way, should that continue? Should we continue to bankroll it?

:35:02.:35:08.

The way Europe and the European Union, individual members develop,

:35:09.:35:11.

of course we should lead discussions about money and heel spending to the

:35:12.:35:17.

respect for rule of law, the respect for human rights and the respect for

:35:18.:35:24.

international rights that are being infringed by the Hungarian

:35:25.:35:26.

government. Of course, we have to have such a discussion and it has to

:35:27.:35:28.

be frank. It's just gone 11.35,

:35:29.:35:32.

you're watching the Sunday Politics. We say goodbye to viewers

:35:33.:35:34.

in Scotland who leave us now The American ambassador, has told us

:35:35.:36:15.

how to get more to risk, to come here. I would not get them to try to

:36:16.:36:25.

pronounce some of the names. Nobody likes a sure. But what next for the

:36:26.:36:35.

Conservatives? This morning we have had more about what they have

:36:36.:36:39.

planned, but they have not got the breakthrough that they hope for, the

:36:40.:36:44.

relentless march upwards at the assembly elections went backwards.

:36:45.:36:56.

Thank you for joining me. We have an article today, about the future of

:36:57.:37:04.

the Tories in Wales. Theresa May has said that by March next year she is

:37:05.:37:12.

going to trigger article 50, is that wise to trigger so soon? Not at all.

:37:13.:37:21.

She has mapped out the strategy, and she said that she would always

:37:22.:37:30.

trigger it this year, the early part of next year, confederated the

:37:31.:37:37.

Cabinet, and herself, cheering the Cabinet committee that is going to

:37:38.:37:42.

be dealing with this matter. We have got the death approach for the

:37:43.:37:52.

negotiations. But concealed, triggering in the middle of March,

:37:53.:37:59.

German and French elections? It is two years of negotiations, it does

:38:00.:38:05.

not have to be two years if it is concluded sooner, but interestingly,

:38:06.:38:09.

the Prime Minister has talked about giving this indication of when

:38:10.:38:15.

article 50 is going to be triggered, interesting dynamic and she has

:38:16.:38:20.

given certainty to that triggering of article 50, and the rest of the

:38:21.:38:26.

negotiations, are going to fall into place. That is going to put the

:38:27.:38:34.

legislative framework into place. I have destroyed this, as a leading

:38:35.:38:47.

Brexiteer, -- described. Free access to the single market, no curbs on

:38:48.:38:55.

immigration? Is that possible? Anything is possible. What is clear,

:38:56.:39:06.

the European Commission and European Union have got to outline what they

:39:07.:39:10.

are looking for. This is a two-way relationship. And trade with

:39:11.:39:17.

Britain, just as important as trade with Europe. We have got this

:39:18.:39:22.

referendum at Hungary, communities feeling as though the voice is not

:39:23.:39:32.

being listened to. The old structures that that propped up. But

:39:33.:39:39.

can you see how it would be difficult to allow the United

:39:40.:39:45.

Kingdom to have tarrif free access to the single market, and curbs on

:39:46.:39:54.

immigration? As I have just said, I think what the European Union needs

:39:55.:40:02.

to do is actually look at the old structures, that propped up the

:40:03.:40:04.

European Union and realise that is not going to last. They have got to

:40:05.:40:10.

get a blueprint for the future. We have had the referendum, June 23,

:40:11.:40:15.

and the British people instructed the government to renegotiate the

:40:16.:40:21.

relationship, and some concerns about negotiating on that. That is

:40:22.:40:26.

what we are going to be walking off. What about immigration, being such a

:40:27.:40:41.

large reason for voting Brexit, curbing would be worth it for

:40:42.:40:44.

trading goods? I think that is a lazy view. We have got a whole range

:40:45.:40:54.

of issues, on both sides. You cannot isolate one issue. We are defining a

:40:55.:40:58.

relationship, that for the last 40 years, has governed this country, it

:40:59.:41:05.

has been governed by the European Union. What people voted for, taking

:41:06.:41:19.

back control. Where those decisions are taken... People are going to

:41:20.:41:26.

vote. Your not giving details. Do you think it would worth it?

:41:27.:41:38.

Having to pay tariffs on certain goods, to curb immigrations? The

:41:39.:41:43.

negotiations have to be a two-way process. It is not about an

:41:44.:41:52.

individual view. It is about getting the best overall deal for the United

:41:53.:41:58.

Kingdom, and Europe. You have got an article in the Sunday Times. Talking

:41:59.:42:04.

about forming a government at Wales, but you are for the robbery from

:42:05.:42:11.

government than at any point since devolution. If you look at what we

:42:12.:42:21.

achieved that constituencies, we slashed majorities... Third in all

:42:22.:42:29.

regions. But we knew that was going to be the case. We had the rise of

:42:30.:42:40.

Ukip, you have got to accept that. But they are out of ideas. I have

:42:41.:42:49.

also said in the article, fed up of Wales being led, I want us to lead,

:42:50.:42:53.

looking at us positively rather than pointing out the negatives. We can

:42:54.:42:59.

achieve so much more, the government has got a new mandate. The leader of

:43:00.:43:09.

the government in Wales, far more popular than you, the Leader of the

:43:10.:43:16.

Opposition, more popular, you said the Conservatives at a six year high

:43:17.:43:21.

in Wales, but yours is not. I will change my aftershave. Seriously, do

:43:22.:43:28.

you think you need a change in leadership? I am working closely

:43:29.:43:36.

with colleagues at Westminster, a robust group, offering all the

:43:37.:43:45.

evidence. But Wales cannot go to the extremes, left or right, we need to

:43:46.:43:51.

be governing from the centre. And if you looked at last week's Labour

:43:52.:43:58.

conference, talking about changes to the executives, the Conservatives

:43:59.:44:03.

want nobody to be left behind. The most important American in Britain.

:44:04.:44:14.

The American ambassador has been in Wales, and we caught up with him in

:44:15.:44:26.

Bangor, after he was talking to some students.

:44:27.:44:28.

Well they want to talk about the election and

:44:29.:44:30.

the Presidential election, of course, is something

:44:31.:44:32.

that everyone I meet is following closely here.

:44:33.:44:42.

We follow back home what's happening in Wales and the United Kingdom

:44:43.:44:45.

But I reminded them, two great Welsh Americans fought it

:44:46.:45:02.

out for President 200 years ago, John Adams and Thomas Jefferson.

:45:03.:45:05.

You go read what they said about each other, it'd

:45:06.:45:07.

make the paint peel but they got through that!

:45:08.:45:09.

The system is designed to be contentious, democracy

:45:10.:45:11.

You were talking to some of the students, about something

:45:12.:45:17.

happening - a sense of unease back at home and here.

:45:18.:45:24.

Is that a reflection of some of the debates, your democracy,

:45:25.:45:27.

I think it's happening on both sides of the Atlantic, the isle,

:45:28.:45:35.

this growing gulf, people talking at each other or past each other.

:45:36.:45:41.

Some may say the UK has been burning bridges

:45:42.:46:00.

Before, we had been asked what we thought as friends.

:46:01.:46:17.

We said it is up to you, we care, value a strong UK in a strong EU.

:46:18.:46:26.

Whatever happens, this relationship will be -

:46:27.:46:27.

as President Obama put it - unbreakable.

:46:28.:46:33.

Ford are looking at how they invest in Wales.

:46:34.:46:42.

Must be concerns for people looking to America and business?

:46:43.:46:49.

Of course it creates uncertainties but what we are focused

:46:50.:46:54.

on are all the things that don't change.

:46:55.:47:01.

And the fact is, we are the number one investor.

:47:02.:47:03.

One million British people wake up and go to work for American

:47:04.:47:06.

One million American people wake up and go to work

:47:07.:47:10.

Can that still continue, the working relationship?

:47:11.:47:14.

Not only can it, it did yesterday, it is today, it will tomorrow,

:47:15.:47:17.

government to government, business to business

:47:18.:47:19.

Our First Minister has been in the US, this month.

:47:20.:47:31.

He's got concerns but the message was Wales is open for business.

:47:32.:47:36.

Do you think that's a message people are buying into in the US?

:47:37.:47:40.

It demonstrated partnerships that exist, not getting complacent,

:47:41.:47:48.

This takes daily nurturing, government level,

:47:49.:47:55.

Here for the first time in north Wales.

:47:56.:48:09.

Hoping you've enjoyed the countryside.

:48:10.:48:15.

How do we persuade, as a nation, Wales, to get more people

:48:16.:48:18.

Quite happy to go to London, Edinburgh...

:48:19.:48:23.

Wonderful thing was done for President Obama,

:48:24.:48:30.

who was the first sitting US President to visit Wales.

:48:31.:48:33.

They did that great promotional video about Wales

:48:34.:48:42.

with Matthew Reese, Damien Lewis, many others.

:48:43.:48:43.

I wouldn't lead with getting them to try to pronounce some of the names!

:48:44.:48:52.

Get them here first then show them the long sign, suck them in,

:48:53.:48:58.

How is your council? Have you been happy with the service you have been

:48:59.:49:17.

dating? The service seems to vary. And the leader of one of the largest

:49:18.:49:21.

councils has told us it is time to cooperate. The government is going

:49:22.:49:28.

to review the blueprint of how they should look in the future.

:49:29.:49:34.

Wherever we live, we've all got something to say

:49:35.:49:36.

But it seems some local authorities are better than others.

:49:37.:49:39.

This report used 40 indicators, ranging from school attendance

:49:40.:49:41.

records to use of leisure facilities, to map out council

:49:42.:49:44.

Where we've got comparable indicators, in around two thirds

:49:45.:49:50.

of those cases we've seen an improvement across Wales.

:49:51.:49:52.

Equally important, I think, is the range of performance

:49:53.:49:54.

and the difference between the best and worst performers.

:49:55.:49:59.

And in over half of the indicators comparable, we've seen a narrowing

:50:00.:50:02.

of the gap between the best and worst performers.

:50:03.:50:08.

That said, there has also been a slight deterioration in some

:50:09.:50:11.

areas, and there remain big differences between some councils,

:50:12.:50:13.

including how they deal with your waste, for example.

:50:14.:50:18.

This estuary has long been a political boundary.

:50:19.:50:20.

These days it separates Carmarthenshire from Swansea.

:50:21.:50:25.

Two neighbouring local authorities, and yet their record when it comes

:50:26.:50:28.

to how much waste is sent to landfill couldn't

:50:29.:50:30.

Swansea is the worst performing council with 38% of all rubbish

:50:31.:50:35.

Carmarthenshire on the other hand is the best - just 5%.

:50:36.:50:44.

Well, Swansea Council, whose recycling rate is higher

:50:45.:50:56.

than the national target said it has chosen to predominantly use a local

:50:57.:50:59.

landfill site for the next four years at a time when other councils

:51:00.:51:03.

have opted to incinerate their non-recycable rubbish.

:51:04.:51:08.

So-called bed blocking, delays in discharging people

:51:09.:51:11.

from hospital due to lack of suitable arrangements elsewhere

:51:12.:51:14.

is another area where people have had very different experiences,

:51:15.:51:18.

Conwy is the best performer with fewer than one person per 1,000

:51:19.:51:26.

over 75 having to wait longer in hospital than is necessary.

:51:27.:51:30.

In Cardiff, the figure was 11/1000 - more than double the rate

:51:31.:51:33.

I would suspect there is an issue about community resources that might

:51:34.:51:43.

be affected by demographic and geographic issues -

:51:44.:51:47.

if you have a rural area, you're relying on community GPs

:51:48.:51:53.

whereas in the cities you could possibly have a higher

:51:54.:51:55.

It is possible it is a geographic issue.

:51:56.:52:18.

It is clear that every local authority has strengths and

:52:19.:52:23.

weaknesses. What can be done to ensure people have equal resources.

:52:24.:52:39.

The answer, cooperation. Not every council has enough capacity, we can

:52:40.:52:51.

share offices, regional working, share practices. We need to look at

:52:52.:52:57.

local government family. Make all areas rise. It seems the Local

:52:58.:53:10.

On Tuesday, the local government statement,

:53:11.:53:12.

members on his vision, having torn up his predecessor's map

:53:13.:53:16.

for council mergers, Mark Drakeford is expected

:53:17.:53:17.

to outline proposals for the existing local authorities

:53:18.:53:19.

to work more closely together on a regional basis.

:53:20.:53:23.

we have seen the variation in performance, is it inevitable that

:53:24.:53:34.

we have got different councils, performing differently at different

:53:35.:53:45.

aspects? Democratic organisations and although they have got

:53:46.:53:49.

frameworks, they have got to provide some services, at different levels.

:53:50.:54:01.

Choices to make. Some merit in saying you have to work together.

:54:02.:54:09.

How difficult, how easy, to achieve that? The fore for misses, --

:54:10.:54:25.

performances, for different measures. You have got to find out,

:54:26.:54:31.

where is the best practice, improving at a range of different

:54:32.:54:39.

areas. Recycling, school performance, and one of the main

:54:40.:54:45.

differences, the percentage of care plans, gone from 58 to 84%. Using

:54:46.:54:55.

this information effectively. That issue, sharing best practice, why

:54:56.:55:02.

has Swansea not been asking neighbours, why has not been

:55:03.:55:09.

happening? Local councils have been coming together, effectively

:55:10.:55:15.

working. I think what we have got to put to one side, it is not going to

:55:16.:55:19.

be a big announcement on Tuesday, that is not going to happen. But

:55:20.:55:27.

what we are going to see is an encouragement of the good practices

:55:28.:55:32.

and formalising some of those arrangements. Can we expect an

:55:33.:55:50.

juicy, carrot and a stick? If you don't, cuts? We could see that, but

:55:51.:55:59.

at the end of the day, a citizen of the country has the right to good

:56:00.:56:07.

services. I think you could have that approach, but essentially we

:56:08.:56:13.

have been talking about this. Local councils need to focus on these

:56:14.:56:20.

services. It is about good services. Putting the citizens first, is going

:56:21.:56:25.

to mean that local councils come together. It could be carrot and

:56:26.:56:32.

stick. This is not the first time that it has been talked about. Local

:56:33.:56:40.

government reorganised itself at Scotland, but still talking about it

:56:41.:56:45.

here. We have been talking about it for a long time. But the government

:56:46.:56:54.

thinks too many councils, fewer would be an answer, why has that not

:56:55.:57:00.

been happening? I do not think they want to spend three years

:57:01.:57:10.

reorganising. Some good practices, and some of the small practices

:57:11.:57:15.

already teaming up with others, to provide services across the country.

:57:16.:57:20.

A lot of good practice. I do not think they are keen to take on

:57:21.:57:28.

reorganisation. But if they can work together, so easily, why not have

:57:29.:57:39.

fewer? Why 22 chief executives? I think they are going to come

:57:40.:57:42.

together, and possibly merge voluntarily. Shared officers. Not 22

:57:43.:57:56.

trading standards officers. Services are going to be shared, not just

:57:57.:58:05.

local government, but better collaboration for other agencies.

:58:06.:58:13.

Better arrangements between them. When you said voluntary measures,

:58:14.:58:23.

how many? -- mergers? I think we need to move away with the accession

:58:24.:58:27.

from numbers, but when they want to come together, I think we are going

:58:28.:58:38.

to seem less. No number? No. Do not forget, you can get the latest

:58:39.:58:41.

political news And we're joined now by the former

:58:42.:58:45.

Work and Pensions Secretary and Leave campaigner,

:58:46.:59:04.

Iain Duncan Smith. it you said we could be out of the

:59:05.:59:21.

European Union by 2018? My senses if you keep their process as simple as

:59:22.:59:26.

possible and don't try to get special pleading and try to be a

:59:27.:59:30.

member of the single market which they are not going to grant you, if

:59:31.:59:34.

you go for a clear and simple position on trade and find an

:59:35.:59:41.

agreement then the more complex issues then disappear. Theresa May

:59:42.:59:48.

has said that when she brings the act forward to repeal the 1972 act,

:59:49.:59:56.

at the same time you binding the European Law and you speed the

:59:57.:00:00.

process up. Keeping it simple, keeping up pace is what we

:00:01.:00:04.

recommended. It allows you to get the end point quicker.

:00:05.:00:10.

You talk about member of the single market, Chris Grayling told me there

:00:11.:00:15.

was no such thing, which slightly puzzled me. You clearly think that

:00:16.:00:22.

there is. What you want, as I understand it, is a free-trade

:00:23.:00:25.

agreement with the European Union. That could not be done by 2018? We

:00:26.:00:31.

want free trade. There are two approaches to getting free trade

:00:32.:00:33.

with the European Union. The first is that you say, OK, in this

:00:34.:00:39.

process, if we sympathise and ask ourselves, if we now have a new

:00:40.:00:45.

relationship, we have left, we want capital goods, we want to access

:00:46.:00:50.

each other's markets, it benefits you more than us, but we are happy

:00:51.:00:54.

not to have tariff barriers on your trade, we have an agreement of no

:00:55.:00:58.

tariff barriers. Financial services are outside, a separate issue, more

:00:59.:01:03.

of a regulatory issue. That is also approaching a deal on equivalence

:01:04.:01:07.

that we could accelerate. The point I am saying is if you do not go down

:01:08.:01:11.

the road trying to nominate individual bits and pieces and say

:01:12.:01:14.

it is a good agreement for us both, you could reach that by agreement.

:01:15.:01:18.

If you don't and you can't, you could fall back on the WTO

:01:19.:01:24.

arrangements and say, well, later on, we will continue that

:01:25.:01:27.

negotiation discussion to decide whether or not we want a free-trade

:01:28.:01:32.

position. If you fall back on that, what you say to the boss of Nissan,

:01:33.:01:36.

who says he will not invest again in this unless the government back row

:01:37.:01:42.

compensates him, he faces tariffs? The answer to that is that first of

:01:43.:01:46.

all I did not believe we will end up in a situation where it is, in any

:01:47.:01:50.

way, a financial benefit for the European Union to want to impose any

:01:51.:01:56.

kind tariff. Right now you are 12% better off anyway. The level of the

:01:57.:02:01.

pound has made it 12% more competitive with European partners,

:02:02.:02:06.

even if you slapped on 10% tariff. It goes up and down, but you asking

:02:07.:02:10.

him to take investment decisions, multi-billion pound decisions, head

:02:11.:02:15.

of Jaguar, saying roughly the same thing, at a time of real

:02:16.:02:24.

uncertainty. Until it is resolved, investment in Britain will slow

:02:25.:02:28.

down, if not dry up? They invest because this is a darn good place to

:02:29.:02:31.

sell your businesses. You heard from the head of the publishing sector in

:02:32.:02:34.

Germany, he said Britain in five years' time will be much more

:02:35.:02:38.

profitable than anywhere else and will be the boom place. Outside the

:02:39.:02:47.

European Union it will be more flexible to set out arrangements. I

:02:48.:02:50.

am with him on this. I was in business before I came into

:02:51.:02:55.

politics. Nobody knows what the future holds for anything. For car

:02:56.:02:58.

makers and others that want to build stuff, they are here because they

:02:59.:03:02.

want a flexible workforce, much lower levels of cost, and a much

:03:03.:03:08.

better contract law base. 85% of Nissan's output goes to the single

:03:09.:03:12.

market. That is right, they also sell here. 15%? You are not suddenly

:03:13.:03:18.

going to meet a massive tariff wall, a closet is not in the interests of

:03:19.:03:22.

the European Union to set up a massive tariffs. Guess who sells

:03:23.:03:27.

more to us than we do to them? The European Union. The Germans

:03:28.:03:30.

themselves are behind-the-scenes talking to us. We had a lot of that

:03:31.:03:34.

during the referendum. Let me move onto some other things. Damian Green

:03:35.:03:40.

is now running your old department. He is scrapping repeated tests for

:03:41.:03:43.

the seriously disabled, people that you know are not going to be able to

:03:44.:03:51.

improve. Why didn't you do that? We wanted to change this, it was a

:03:52.:03:55.

programme given to us by the last Labour government, we did quite a

:03:56.:03:59.

lot to improve it. The big problem, the programme as it exists at the

:04:00.:04:02.

moment, it does not deal with health conditions, it deals with ability to

:04:03.:04:06.

work. That is the problem. If you want to scrap it for people with

:04:07.:04:09.

health conditions, you have to change the criteria by which they

:04:10.:04:13.

are being assessed. That has always been the issue. For disability

:04:14.:04:25.

payments, it is a different matter. They are assessed on their

:04:26.:04:27.

condition. The problem for that... He will stop the assessments of

:04:28.:04:30.

people that are seriously disabled, why didn't you do that? This is not

:04:31.:04:32.

seriously disabled, it is people that suffer from sickness

:04:33.:04:34.

conditions, not necessarily full-time disability. There are two

:04:35.:04:38.

elements. When I was in Government, we have always set out a process

:04:39.:04:41.

that said we needed to change the way the sickness benefit system was

:04:42.:04:47.

assessed. That was so you could rule out conditions, some progressive,

:04:48.:04:51.

some absolute, on a medical basis, on the approval of the Health

:04:52.:04:55.

Service, so they would say this is a condition that will change, it will

:04:56.:04:58.

mean they cannot work now but they might be able to work for a bit. You

:04:59.:05:02.

put it into a box marked medical conditions. That was already on the

:05:03.:05:07.

box. He has just done that, to acclaim. Why didn't you do it, if it

:05:08.:05:13.

is that simple? We needed to get agreement in Government and we have

:05:14.:05:16.

not reached the Provo ease approval. It is a wider plan. This could have

:05:17.:05:23.

been incremented on its own? But you have to change the way you do it. I

:05:24.:05:30.

was in favour of a bigger plan that brought in changes all into one,

:05:31.:05:33.

because they are competing with each other and do not have the kind of

:05:34.:05:36.

effect that you want. It is the right thing to do. Until now, there

:05:37.:05:41.

have not been a huge number of assessments taking place because the

:05:42.:05:43.

system has not been able to cover it. There is a lot of talk about

:05:44.:05:50.

trying to reposition the Tory party on the centre ground, even the

:05:51.:05:54.

centre-left, talking about worker's rights and so on. It is not credible

:05:55.:06:01.

until she does something. 6 million people earn less than the Living

:06:02.:06:05.

Wage, after six years of Conservative government. 6 million

:06:06.:06:08.

people earn less than the Living Wage. That is the reality, not Tory

:06:09.:06:12.

erect a wreck that we are hearing in the hall. -- that is the Tory

:06:13.:06:22.

rhetoric. Raising the minimum wage was making sure that you identify

:06:23.:06:29.

that and raise the blood. There are still 6 million below. The mantra of

:06:30.:06:33.

this government was to make work pay. 50% of families in poverty have

:06:34.:06:42.

at least one family member working. They are still in poverty, waiting,

:06:43.:06:46.

doing difficult and unpleasant jobs, long hours, they are still in

:06:47.:06:53.

poverty. Many people in this country work and still it is the equivalent

:06:54.:06:59.

of poverty. That does not pay, work does not pay for them. Huge problems

:07:00.:07:03.

down the low skill level of work. This is the one area, the level of

:07:04.:07:13.

skills at that point is arguably some of the lowest in the Western

:07:14.:07:18.

world. Companies too often do not invest in skills because of the

:07:19.:07:21.

nature of the tax credit system, you have them in packets of 16 hours, it

:07:22.:07:26.

is not worth investing. Universal Credit will change all of that quite

:07:27.:07:29.

dramatically. It allows people to work more of the hours, invest more

:07:30.:07:34.

in them. The second aspect is back to the migration issue. That has had

:07:35.:07:38.

a very damaging effect on low workers. There are two elements of

:07:39.:07:43.

this. It is not just the statutory migration, it is that what happened

:07:44.:07:46.

is that a lot of people come for under one year. They do part-time

:07:47.:07:53.

work, they claim full benefits, Migration Watch proved it is over 4

:07:54.:07:57.

billion per year. That allows them to go and do cash in hand work. It

:07:58.:08:03.

is a big problem, it has only now become clear how damaging that has

:08:04.:08:07.

become to British people working at low income level. What does this

:08:08.:08:11.

party, if it is this self-styled Workers Party, what does it have to

:08:12.:08:16.

do in a country where 6 million people get less than the Living

:08:17.:08:21.

Wage, 50% of people in poverty are already in work and poverty levels

:08:22.:08:24.

among those in work are at record levels. So much for the worker's

:08:25.:08:36.

party? The answer is it has to do a lot, we have been talking about

:08:37.:08:40.

Brexit a lot, Theresa May has dropped a lot of hints about what

:08:41.:08:45.

she wants to do. The announcement yesterday morning about this massive

:08:46.:08:50.

review, led by a Blairite, Matthew Taylor, to completely re-examine

:08:51.:08:55.

employment rights. Thereby meaning, for the low paid and the casual

:08:56.:09:02.

workers, holiday pay for Uber drivers, it opens a massive area of

:09:03.:09:09.

things, grammar schools... You need high-quality technology schools to

:09:10.:09:20.

up-skill its? She has all of this on her agenda, possibly more

:09:21.:09:25.

interesting than even Brexit. I was planning not to mention Brexit in

:09:26.:09:31.

this segment, but I think I did. There was a lot of flesh to be put

:09:32.:09:34.

on his bones before it is convincing? Theresa May is playing a

:09:35.:09:41.

political game of trying to dump the nasty party image, become a more

:09:42.:09:45.

compassionate conservative. She is changing from the David Cameron era,

:09:46.:09:52.

instead of being the bottom 10% or 15% of people that he was focusing

:09:53.:09:56.

on, as well as the wealthier elite, she is looking at the people earning

:09:57.:10:02.

more than ?16,000, up to ?21,000, those who have children that are not

:10:03.:10:07.

on free school meals, not the most deprived, she calls them the just

:10:08.:10:11.

managing classes, they might have one for holiday each year, they

:10:12.:10:15.

might want to send their kids to piano lessons or the local Football

:10:16.:10:19.

Club, they are not the poorest people on welfare. That could have

:10:20.:10:24.

an impact on what you're saying, it could also undermine her reputation

:10:25.:10:26.

for being compassionate if she is seen to be abandoning the people

:10:27.:10:31.

that need help most. There is always a political case for doing something

:10:32.:10:34.

for Middle Britain, where most people are. They call at Middle

:10:35.:10:38.

America over there and so on. But these are not the in work but in

:10:39.:10:46.

poverty. Being a worker's party, one that dines out on its support for

:10:47.:10:50.

work, if it is to do anything, it has to do something about these

:10:51.:10:54.

people? The key issue is what the economic policies are in this new

:10:55.:11:00.

government. Nobody on the programme this morning has talked about the

:11:01.:11:03.

deficit, which George Osborne framed everything around, to the point

:11:04.:11:13.

where, as they know better than anyone, he struggles to get welfare

:11:14.:11:16.

reforms affected because of our budget cuts that hit those on low

:11:17.:11:21.

income in work. Until we know the degree to which the framing of that

:11:22.:11:25.

deficit strategy has changed, we will not really know the space they

:11:26.:11:29.

will have to make sure that does not happen over the next few years and

:11:30.:11:33.

the opposite happens. That applies to all of these issues, actually.

:11:34.:11:38.

The economy will provide the space, or not, to do these things. The

:11:39.:11:45.

Treasury is telling the Chancellor that the slowdown in the economy,

:11:46.:11:49.

not as slow as they thought, but still a slowdown, that, in itself,

:11:50.:11:54.

will widen the deficit. Therefore, he is not going to have a tonne of

:11:55.:11:58.

money to throw around on top of that, which would widen the deficit

:11:59.:12:02.

even further. There is room for manoeuvre which may be quite slight?

:12:03.:12:07.

Not quite true. He has abandoned George Osborne's fiscal targets.

:12:08.:12:12.

Having already taken this into account by what they think is the

:12:13.:12:15.

slowing of the economy. They have been wrong in the past, but that is

:12:16.:12:19.

why they have done that. There is not a turn of money around to spend

:12:20.:12:23.

billions on infrastructure, unless, of course, like Mr Corbyn, you want

:12:24.:12:28.

to borrow it. When you say you are not going to eradicate the deficit

:12:29.:12:33.

by 2020, that is what you mean. If he needs to cushion the Brexit

:12:34.:12:38.

impact, if there is one, I don't think we could pay off the deficit

:12:39.:12:41.

by 2020. Then you'll have all of this money to do what you want with.

:12:42.:12:47.

Final thought? There is also the attitude about business and the

:12:48.:12:51.

attitude to the super rich and well. I think Theresa May will concentrate

:12:52.:12:55.

on that more than David Cameron, alleviating concerns. The Autumn

:12:56.:12:58.

Statement from the Chancellor will be as big as any of the statements

:12:59.:13:03.

we hear this week. I am glad to hear it, it will be coming up live on a

:13:04.:13:05.

Daily Politics special. at the Conservative Party

:13:06.:13:08.

conference here in Birmingham. Fear not, I'll be back tomorrow

:13:09.:13:11.

at 11am for a two-hour special as Chancellor Philip Hammond

:13:12.:13:14.

takes to the stage. We are back on Tuesday and Wednesday

:13:15.:13:20.

bringing Theresa May's speech on Wednesday just before lunch. We will

:13:21.:13:24.

be back next Sunday as well. In the meantime, remember -

:13:25.:13:26.

if it's Sunday, it's Euro 2016,

:13:27.:13:29.

what a time for Welsh football. to develop the next stars of

:13:30.:14:13.

the future? We've definitely got the numbers,

:14:14.:14:19.

our numbers are right up there. But given our Welsh weather,

:14:20.:14:22.

should our grassroots be 3G? If there were better pitches at

:14:23.:14:25.

a younger age, you'd probably get more kids

:14:26.:14:27.

coming through. You're probably looking at

:14:28.:14:29.

about 850K just to put a pitch down.

:14:30.:14:33.

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